Indian Indices Open Marginally Lower; Banking And Energy Stocks Witness Selling


Asian shares are trading on a mixed note today. The Nikkei 225 is up 0.1% while the Hang Seng is down 0.7%. The Shanghai Composite is trading down by 0.8%.

Back home, India share markets opened the day marginally lower. The BSE Sensex is trading down by 31 points (down 0.1%) while the NSE Nifty is trading down by 13 points (down 0.1%). The BSE Mid Cap index is trading up by 0.3%, while the BSE Small Cap index has opened the day up by 0.2%.

Sectoral indices have opened the day on a mixed note with oil & gas stocks and banking stocks witnessing maximum selling pressure.

The rupee is trading at 70.77 to the US dollar.

From the aluminum space, Nalco share price will be in focus today as the company has announced a record dividend payout of Rs 11 billion for 2017-18. On a per share basis, the amount works out to Rs 5.7 per equity share of Rs 5 each.

From the pharma space, market participants will also be tracking Pfizer share price today as BSE and NSE have said that they will be placing the stock under the additional surveillance measure (ASM) framework from today.

From the currency markets, extending its downtrend, the rupee fell to a record low of 70.54 a dollar yesterday.

This was seen over concerns about higher oil prices and its impact on India’s current account deficit, along with month-end dollar demand from importers, weighed on the rupee.

What does the fall in rupee mean for the Indian economy? Note that the rupee has been witnessing selling pressure against the US dollar since the start of this calendar year.

A depreciation in rupee means importers buying goods and services at a higher rate than earlier. This doesn’t bode well for a developing economy that relies heavily on imports.

On the corporate side, companies who have taken foreign loans from abroad will be impacted. The repayment obligations in terms of principal and interest will rise, leading to a dent in the cash flows and financials.

Reviews

  • Total Score 0%
User rating: 0.00% ( 0
votes )



Leave a Reply

Your email address will not be published. Required fields are marked *